HFFG Q2 2026 - Preliminary Earnings Alert

Event: Quartr Q2 2026 event Retrieved: 2026-08-10T23:10:00Z Comparison mode: maximal Scorecard contract: v1 Source status: release=available (earnings release 3688284, quarterly report 3688283) | financials=earnings release only | transcript=available and complete (call 2026-08-10 20:30Z)

Consensus scorecard

• Consensus scorecard, bulleted equivalent:
  • Revenue / consolidated net revenue: Quartr actual $323.781m against API Ninjas consensus $320.539m - Beat +$3.242m, +1.0%.
  • EPS / adjusted diluted: Quartr actual $0.12 against API Ninjas consensus $0.06 - Beat +$0.06, +100.0%.

Reported results and guidance

• Q2 results, bulleted equivalent (Q2 2026 vs Q2 2025): net revenue $323,781k vs $314,853k, an increase of $8,928k or 2.8%; gross profit $55,048k vs $55,132k, a decrease of $84k, with gross profit margin of 17.0% against 17.5%; distribution, selling and administrative expenses up $1.2m or 2.4%, falling to 16.1% of net revenue from 16.2%; net income $2,621k vs $510k, an increase of $2,111k or 413.9%; earnings per share $0.05 vs $0.02; adjusted EBITDA $13,569k vs $13,845k, down $276k or 2.0%; adjusted net income $6,431k vs $6,382k, up $49k or 0.8%; adjusted diluted earnings per share $0.12, unchanged from $0.12.

• Six-month results, bulleted equivalent (6M 2026 vs 6M 2025): net revenue $635,783k vs $613,281k, an increase of $22,502k or 3.7%; gross profit $105,574k vs $106,091k, down $517k or 0.5%, with gross profit margin of 16.6% against 17.3%; distribution, selling and administrative expenses of $101.7m, up $0.9m or 0.9%, falling to 16.0% of net revenue from 16.4%; net income $3,977k against a net loss of $(1,020)k, a $4,997k improvement; earnings per share $0.07 against $(0.01); adjusted EBITDA $23,715k vs $23,618k, up $97k or 0.4%; adjusted net income $9,819k vs $9,858k, down $39k; adjusted diluted earnings per share $0.18 vs $0.19; cash provided by operating activities $14.0m vs $10.5m.

• Net income drivers, bulleted equivalent: the quarterly improvement was primarily driven by other income from an employee retention credit of $1.8 million including interest, an IEEPA tariff refund of approximately $1.1 million, and a positive change in the fair value of interest rate swap contracts of $1.4 million against 2025, partially offset by a $1.3 million decrease in income from operations. Over six months the same items appear alongside a $1.4 million gain from the Utah building sale and a $3.4 million favorable year-over-year swing in swap fair value, partially offset by a $1.4 million decrease in operating income and a $0.2 million unfavorable change in income taxes.

• Liquidity, bulleted equivalent: cash of $18.1 million, checks issued but not presented for payment of $5.6 million, and access to approximately $39.7 million in additional funds under a $125.0 million line of credit, subject to a borrowing base calculation.

• Guidance: the release contains no revenue, margin or earnings guidance. The forward-looking content is the pending acquisition of Searay Foods, a Canadian importer and distributor of ethnic and specialty seafood with six proprietary brands, which management describes as margin-accretive and as the Company's first expansion outside the United States. No purchase price, closing date, or revenue contribution is stated in this release.

Key bullish aspects

• Net revenue of $323.781m beat the API Ninjas consensus of $320.539m by $3.242m, or 1.0%, and set what management describes as the highest quarterly revenue in the Company's history and a sixth consecutive quarter of year-over-year net revenue growth.
• Adjusted diluted EPS of $0.12 beat the API Ninjas consensus of $0.06 by $0.06. The provider's own historical actual EPS series sits on the company's adjusted basis, so the comparison is basis-consistent, although the direction of this row is basis-sensitive and is addressed in Source limitations.
• GAAP net income rose 413.9% to $2,621k from $510k, and six-month results swung to net income of $3,977k from a net loss of $(1,020)k.
• Six-month operating cash flow rose 33.3% to $14.0m from $10.5m, which management attributes to higher income and favorable changes in accrued expenses.
• Cost control held: distribution, selling and administrative expenses grew 2.4% against 2.8% revenue growth in the quarter, so the expense ratio improved to 16.1% of net revenue from 16.2%, and to 16.0% from 16.4% over six months.
• Revenue growth was attributed to volume growth and pricing improvement in Seafood and Commodity, so the top line reflects both units and price rather than price alone.
• The agreed acquisition of Searay Foods extends the Company into Canada with six proprietary brands in the seafood category, which management characterizes as margin-accretive and as an extension of an established M&A playbook.
• IEEPA tariff refunds received during the quarter partially offset the tariff drag on gross margin, indicating some recovery of previously incurred tariff costs.
• Liquidity totals roughly $57.8m between $18.1m of cash and approximately $39.7m of undrawn borrowing base availability.

Key bearish aspects

• Adjusted EBITDA fell 2.0% to $13,569k while revenue grew 2.8%, so the quarter deleveraged on the company's primary non-GAAP measure. Over six months adjusted EBITDA grew only 0.4% against 3.7% revenue growth.
• Gross profit was essentially flat at $55,048k, down $84k, despite $8,928k more revenue, meaning the incremental revenue carried effectively no incremental gross profit. Gross margin fell 50 basis points to 17.0% in the quarter and 70 basis points to 16.6% over six months.
• Income from operations decreased $1.3 million in the quarter and $1.4 million over six months. The entire GAAP earnings improvement therefore came from below the operating line.
• The drivers management identifies for the net income improvement are non-operating and largely non-recurring: a $1.8 million employee retention credit, an approximately $1.1 million tariff refund, a $1.4 million swap fair value swing in the quarter, and a $1.4 million building sale gain over six months. Those quarterly items total roughly $4.3 million against reported net income of $2.621 million.
• Adjusted net income was essentially flat, up $49k or 0.8% in the quarter and down $39k over six months, and adjusted diluted EPS was unchanged at $0.12 in the quarter and down a cent to $0.18 over six months.
• Incremental tariffs that took effect beginning Q3 2025 are cited as the primary margin pressure, and the prior-year comparison periods predate them, so the year-over-year margin drag persists through at least the third quarter comparison.
• Distribution, selling and administrative expenses rose in absolute terms on elevated fuel, insurance and professional services costs, offset only partially by lower personnel expense.
• Meat & Poultry saw price decreases, and over six months Asian Specialty saw a volume decrease, so two categories detracted from the growth the Seafood and Commodity categories supplied.
• Checks issued but not presented for payment of $5.6 million offset nearly a third of the $18.1 million cash balance.

Key uncertainties

• The Searay Foods acquisition has no disclosed purchase price, financing structure, closing date, revenue, or margin contribution in this release, so its effect on earnings and on the $125.0 million facility cannot be assessed here. The release's own risk factors flag the possibility that the transaction does not complete on the anticipated terms or timeline, or at all.
• The employee retention credit of $1.8 million and the IEEPA tariff refund of approximately $1.1 million are not characterized as final or recurring, so whether further amounts follow is unknown.
• The release does not state how much of the incremental tariff cost remains unrecovered, nor the total tariff burden incurred since Q3 2025, so the size of the potential future refund or the run-rate margin drag is not quantifiable from this document.
• Interest rate swap fair value contributed $1.4 million in the quarter and $3.4 million over six months to the year-over-year comparison; this is a mark-to-market item that can reverse and is not sized as a balance.
• Segment or category revenue is described only directionally, with no dollar figures for Seafood, Commodity, Meat & Poultry or Asian Specialty, so the mix behind the flat gross profit cannot be quantified.
• The company references an operational transformation program whose foundation is "largely built" and cross-selling initiatives across the Southeast and Midwest, without stating cost, completion timing, or contribution.
• The Adjusted EBITDA reconciliation is stated to be in Appendix A of the release, which was not among the pages read, so the specific items bridging GAAP net income to the $13,569k figure are not established here.
• No balance sheet totals, share counts, or debt balances appear in the pages read, so leverage and the diluted share base cannot be stated.

Market context

• API Ninjas price snapshot for HFFG: no price snapshot was retrieved for this ticker during this run, so no price or volume figure is stated and no market reaction is characterized.
• The release was published at approximately 2026-08-10T20:15Z per the Quartr source PDF timestamp, ahead of the 20:30Z call, which the release schedules for 1:30 p.m. Pacific / 4:30 p.m. Eastern time.

Source limitations

• Every displayed actual comes from Quartr earnings release document 3688284. Quartr standardized financials were not used for this report.
• Pages 3 through 7 of the seven-page release were not read. Those pages contain the financial statements and the Appendix A non-GAAP reconciliation, so no balance sheet, share count, or GAAP-to-adjusted bridge is reproduced here; the gaps are recorded in the uncertainties above rather than filled by estimate.
• Prior-year figures were derived from the release's own summary table, which presents current-period amounts alongside a stated change over prior year. Prior-year net revenue of $314,853k is $323,781k less the stated $8,928k change; prior-year gross profit of $55,132k is $55,048k less the stated $(84)k change; prior-year net income of $510k is $2,621k less $2,111k; prior-year adjusted EBITDA of $13,845k is $13,569k less $(276)k; prior-year adjusted net income of $6,382k is $6,431k less $49k. Each derived prior-year figure reconciles to the percentage change the release states in its narrative (net revenue +2.8%, net income +413.9%, adjusted EBITDA −2.0%, adjusted net income +0.8%).
• Six-month distribution, selling and administrative expenses of $101.7m and the prior-year $100.8m come from the release narrative, which states them to one decimal place in millions; the quarterly figure is given only as a $1.2m or 2.4% increase and a percentage of revenue, so no quarterly dollar amount is shown.
• EPS basis: adjusted diluted EPS was selected under the maximal-mode ladder. This choice determines the direction of the EPS row, so the evidence is set out in full. The provider's actual EPS for Q2 2025 was $0.12, which equals the company's adjusted diluted EPS of $0.12 for that quarter against a GAAP EPS of $0.02. The provider's actual EPS for Q1 2026 was $0.06, which equals the company's Q1 2026 adjusted diluted EPS derived as six-month $0.18 less quarterly $0.12, against a GAAP Q1 2026 EPS of $0.02 derived as six-month $0.07 less quarterly $0.05. Both checks place the provider series on the adjusted basis. Note carefully: on GAAP EPS of $0.05 the same $0.06 estimate would be a miss of −16.7%, so this row's direction reverses under the alternative basis. The provider's estimate of $0.06 also equals the company's Q1 2026 adjusted diluted EPS, which leaves open the possibility that the estimate is stale rather than a forecast of this quarter; maximal mode publishes the labeled result with this caveat stated rather than blanking the row.
• The API Ninjas row for HFFG dated 2026-08-10 carries fiscal_year 2026 and fiscal_quarter 2, which agrees with the Quartr fiscal period of Q2 2026, so the fiscal-period match is by populated API fields rather than by the date-only path. The row carried no actual revenue or EPS.
• The revenue row is not basis-sensitive: net revenue is the company-wide figure and the beat holds on the reported $323,781k.
• No market price snapshot was retrieved for this ticker during the run, so the Market context section states no price.